Steps to becoming a CFO | Your comprehensive guide (2024)

As a CFO, you’re as high as you can go in a company. The only person above you operationally is the chief executive officer (CEO), then there are the owners – entrepreneur, shareholders, chairman – who you have to report to and keep happy.

For many CFOs the next challenge is CEO, company ownership or retirement – so you see, it’s very nearly the final and most senior role for many finance professionals.

What does a CFO do?

The CFO has complete oversight of an organisation’s financial operations and has a significant amount of responsibility for the overall business strategy and performance. ‘The CFO role comes with wide-ranging responsibility and accountability, as well as a high level of job satisfaction,’ says Paul McDonald, Robert Half senior executive director. ‘Today's financial executives influence all areas of their organisations, from operations to information technology to human resources.’

The CFO is responsible for ensuring and developing revenue streams and driving business strategy. They do this by determining risk controls and developing innovative funding and capital-raising strategies to drive expansion, modernisation or product development. They need to be technologically competent and able to integrate technology strategy into the business. A CFO works closely with the CEO to influence and drive business strategy and will often be a board member responsible for corporate investment.

Excellent managers

Depending on the size of the company, a CFO may not have any actual finance or accounting tasks to perform, so they need a team of managers and professionals they can trust to deliver the numbers and perform in the company’s best interests. The CFO relies on company divisions to provide the necessary financial and operational intelligence to then report to the board or influence other executives.

Almost as important as being an extremely good finance professional, a CFO needs to be an experienced and capable manager. They need many years experience building and leading teams before becoming a CFO.

Education

The majority of CFOs will understandably have an educational background in finance, business, economics or management. A typical path would be a bachelor’s and master’s degree in accounting or other finance-related studies, alongside the ACCA qualification.

According to a survey of Fortune 100 CFOs by Russell Reynolds, 54% had an MBA, but only 12% acquired their undergraduate degree from a top-tier university. So while education and the relevant qualifications are very important, the quality of your working experience and professional track record is the strongest indicator for potential CFOs.

What does it take to be a great CFO?

  • Flawlessly execute strategy
  • Be strategic and tactical
  • Ensure revenue flow by having the vision to avoid or adapt to disruptions to revenue streams and know when to invest in something new to grow profitability

What does a CFO know?

  • The operations
  • The product
  • The customers
  • The vendors and suppliers
  • All the employees
  • The shareholders
Steps to becoming a CFO | Your comprehensive guide (2024)

FAQs

Steps to becoming a CFO | Your comprehensive guide? ›

To become a CFO, you must start with a strong finance, accounting, or business background. A bachelor's degree in any of these programs will teach you management fundamentals, including marketing and strategic thinking skills. Next, it is crucial to gain work experience as a financial analyst, accountant, or similar.

How do I become a CFO step by step? ›

To become a CFO, you must start with a strong finance, accounting, or business background. A bachelor's degree in any of these programs will teach you management fundamentals, including marketing and strategic thinking skills. Next, it is crucial to gain work experience as a financial analyst, accountant, or similar.

What qualifications do I need to be a CFO? ›

The majority of CFOs will understandably have an educational background in finance, business, economics or management. A typical path would be a bachelor's and master's degree in accounting or other finance-related studies, alongside the ACCA qualification.

How to become a CFO without a CPA? ›

Becoming a CFO without a CPA is definitely possible and here are some tips to help you do it:
  1. Earn a relevant degree. ...
  2. Gain practical experience. ...
  3. Develop leadership skills. ...
  4. Expand your network. ...
  5. Pursue advanced education. ...
  6. Stay current with industry trends. ...
  7. Focus on strategic thinking. ...
  8. Gain experience in various industries.
May 4, 2023

Do you need a CFA to be a CFO? ›

A CFO does not need to have a CPA, CFA, or MBA designation. But of the three, having a CPA designation does help dramatically . I've passed the CPA, and I can say that it is the most important designation to have if you're considering being a startup CFO.

What is the pathway to become a CFO? ›

To become a CFO, you need a degree in a field like accounting, or something related to finance/accounting. Some people get a degree in business and then an MBA, but it is recommended to get education and experience in accounting/finance. After all, that is what a CFO role is all about.

What is the average age of a CFO? ›

Average age for CFOs in the US is 51 years old.

What is the most common path to become a CFO? ›

The basic qualifications of a CFO include a bachelor's degree in finance or economics and professional certification such as CPA or CMA. Doing an MSF (Master of Science in Finance) is extremely beneficial. Or you could possibly also choose an MBA with a specialization in accounting or finance.

Who is the youngest CFO? ›

At the age of 26, Watson became the youngest ever CFO of a NYSE-listed company. As a CFO, Watson says, it helps to be impatient. “If something needs to get done, I make sure it gets done, period—no excuses. A lot of people think patience is a good quality, but I would describe myself as a relatively impatient person.

What does a CFO do all day? ›

A CFO's daily tasks involve developing and managing a budget and ensuring compliance with financial regulations, negotiating loans and lines of credit, creating financial statements, overseeing investment activity, and more.

Is a CFA or CPA better for CFO? ›

The CPA is great if you want to rise up the finance department at a corporate business and ultimately become the CFO, or if you want to rise up the ranks at a public accounting firm. The CFA credential, by contrast, is great if you want to work at a bank and, in particular, in investment management or equity research.

How long does it take to become a CFO? ›

Many employers require at least eight to 10 years of professional experience in the finance or accounting field or department to become a CFO. Some may prefer previous departmental leadership experience as well. Include your highest level of education and the quantifiable results you have achieved over your career.

Is CPA or MBA better for CFO? ›

MBAs have firmly established dominance over CPAs in the CFO suite. As of August 2024, 51.42% of CFOs in Fortune 500 and S&P 500 companies hold MBA degrees, compared to just 37.63% with CPA credentials, according to a report from Crist|Kolder.

What credentials does a CFO need? ›

What qualifications do CFOs need?
  • Education. University degrees are required for the vast majority of CFO positions. ...
  • Experience. There's no way around it: a prerequisite to becoming a CFO is years of relevant experience. ...
  • Communication. ...
  • Vision. ...
  • Leadership. ...
  • Flexibility. ...
  • Tech-savvy. ...
  • Diplomacy and emotional intelligence.
Apr 1, 2024

What percent of CFOs are CFAS? ›

38.5% of sitting CFOs in 2023 were CPAs, up from 34.5% the previous year; 52.5% of sitting CFOs had MBAs. The percentage of CFOs without either CPA or MBA credentials stood at 21.5% in 2023, markedly down from 30.2% in 2017.

Is the CFA harder than the CPA exam? ›

CFA vs CPA Exam difficulty

Both are challenging and require gaining skills and knowledge in complex topics. However, the CPA Exam generally requires less studying - around 80 to 120 hours per section compared to 300 hours per section of the CFA Exam, and the CPA Exam also has a higher pass rate.

Is becoming a CFO hard? ›

Being a CFO is difficult but with education and experience, individuals in the role thrive. CFOs need discipline, initiative, dedication, and time-management skills as well.

How do I transition to CFO? ›

Navigating The Transition: A Controller's Ascent To The CFO Role
  1. Foster Strategic Thinking. ...
  2. Enhance Leadership and Communication Skills. ...
  3. Embrace Ethical Leadership. ...
  4. Develop a Strong Financial Acumen. ...
  5. Commit to Continuous Professional Development. ...
  6. Leverage Technology and Data Analytics. ...
  7. Unleash a Personal Brand.
Feb 4, 2024

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